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Plan wording for negative elections


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Posted

Does any one have or know where to find sample approved plan and SPD language to accomodate "negative elections"?

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Alan Mock

  • 2 weeks later...
Guest pensionperson
Posted

I'd like to see any language also

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Guest Crystal
Posted

At a recent PPD class the speaker (Steve Forbes) indicated that their new doc, amended for SBJPA, TRA 97, etc., would include language for negative elections.

  • 4 weeks later...
Guest Edward McElroy
Posted

I don't want to appear as a broken record, but has anyone seen any negative election language. Thanks for your time. Ed

  • 2 weeks later...
Guest Kerry
Posted

I'm not sure if this is applicable, but we make the new hire sign a statement that says that they understand that 2% of their earnings will go into the plan's most conservative investment, unless they inform the HR department within 7 days. This is a part of our new hire process and has proven effective in building participation.

Posted

Kerry,

How do you define "the plan's most conservative investment"? How is it defined? Is it cash? government bonds? money market?

Since one of the problems with employees' long range investing is their purchase of low yielding items, why not start by placing the money in the equivalent of an index fund (Assuming one is available)? Or, more conservatively, a large cap fund?

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